Procurement Using Management Methods Construction Essay

Management method of procurance is a system that that focused in the direction and integrating design and building undertakings. Besides that, it is a method that building work is completed by utilizing several separate plants or merchandise the contract which the chief contractor is responsible for pull offing. Normally, the contractor does non make the physical work, alternatively is gave a amount for the pull offing the undertaking due to the assorted occupations in bundles.

Besides that, the employer will get down to name advisers such as designer, applied scientist and measure surveyor and a contract decision maker to fix the architectural drawings, a undertaking specification and cost program. Furthermore, the employer has taken over the control of the undertaking design through their professional squad. The contractor is appointed by dialogue or stamp, and interview. The plants bundles are normally let by competitory stamp. This method besides can be said that is act as “ fast path ” method within procurement method.

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Therefore, it is good for the proposed contractor to be involved every bit early as possible as they provide professional in footings of scheduling and build ability of the occupations bundles. The graph below is show the procedure of the procurance method that used Management Method.

In general, there are three types of procurance method in the direction, there are direction catching, building direction and “ design and manage ” .

The direction catching and building direction catching are the client is contracted and paid the fee to director to pull off and oversee the building of a undertaking to construct the undertaking that he or she needs. Besides that, the existent building works is divided to many bundle which assorted specializer contractors.

Under these effects, the direction contractor is hired as a building adviser to be the portion of the client ‘s squad. The most difference between both direction catching and building direction is the direction undertaking really guarantee the direction contractor face a small spot fiscal hazard for the public presentation of others while the Construction Management is no general contractor in the building work. The direction contraction is normally let on the cost-reimbursable footing, so the understanding of the direction contraction will included the cost-reimbursable.

( Hughes, W. ( Ph.D. ) , Greenwood, D. , Hillebrandt, P. ,2006 )

The design and manage system is non so common in Malaysia. It is really a individual organisation that is commissioned by the client for the planing the undertaking and pull offing the building. In their procedure, the house is transporting out the work itself, but it besides contracted out to some bundle contractors who already enter the contract with the client. So, they are really become the adviser for the client and become member of the undertaking.

Management Contracting and Professional Construction Management Systems


The procurance method of Management Contracting and Construction Management are stress based on the contractor of these undertakings has the cognition, has many experiences and besides high competitory strength for greater the design and building for a undertaking. Because of the features above, so there are more efficient and effectual coordination of work, stuffs, manpower and workss, so it do the clip of building become shorter compared to other procurement systems.

The direction contractor besides can pull off and lend to the design development. The system besides allows the building works start early comparison to the procurance system with traditional method. The simple and basic stamp ‘s readying, displacement of the procedure of conventional and detail design to building stage allow for the early phase of the building. As a decision, these factors are the grounds of cut down of overall clip undertaking compared to traditional and design and construct procurement method.


The undertaking ‘s cost procured utilizing this system is able to be lower than those utilizing other procurement method. The cost of the undertaking is really are the entire amount of monetary value which quoted by the bundle contractors. Because the direction contractor is besides move a adviser, so that is no excess cost is added up for the chief contractor ‘s net income border. The extra cost merely is the adviser fee that the client should be wage to the direction contractor or to the building direction adviser.


The direction contractor or the building director able to be more serious with the criterion and quality of the work done than the bundle contractors because they are act as the agent responsible for the building. Normally there are really experience so that they can be more adept and more effectual in maintain and do certain the high quality plants in the building. They have the cognition that make them more be careful in choosing the building stuffs and equipment that needed in the stamp. Besides that, they are besides tends to be more take a bosom in every stairss they do during the building start. Therefore, these factors have made this procurance method become a better criterion and quality in the completion of the building work done.


Management Catching

1. The direction contractor participates during the early phases of the RIBA program of work, so he has a close integrating and co-operation among the direction or design squad. He provides information in physique ability, cost, clip, productiveness and functionality of the edifice. In others plants, he assists in recognizing the feasibleness of the building undertakings.

2. Management contractor provides wider services than a Traditional chief contractor. He needs to be an efficient coder, co-ordinator, director, experienced contractor and interior decorator to guarantee advanced design quality, fast completion and achieve economic system.

3. The direction contractor, like other advisers, act as a professional agent of the client. The direction contractor ensures that his direction expertness is directed to maximise the client ‘s benefits instead than his ain net income.

4. The direction catching promotes the equality between squad member and Foster teamwork spirit. Team, members without struggle of involvement, can works in harmoniousness to take the Traditional barrier between the contractor and design squad members is removed.

5. Management Contracting is a fast physique method to accomplish lower limit undertaking clip. Work bundles can come on earlier on site every bit shortly as each bundle design is completed and work bundle stamps awarded.

6. Management undertaking work really successful with big and complex undertakings, which require greater flexibleness and proficient expertness. Achievement through structured and integrated undertaking direction services may non be possible without the client ‘s engagement, which shall give speedy response to any inquiries or jobs arise.

7. With the decrease of some part of the Architect ‘s duty, the client is happy to enable the Architect to concentrate on the design instead involves in contractual affairs.

8. Management Contracting provides greater competition peculiarly when trade work bundle contractors whom many are experienced and big contractor become specialist sub-contractors. Therefore, they are able to cite a realistic and economical monetary value for work bundles.

9. The work contractors are selected through joint determination of the professional squad, the client and the direction contractor, utilizing wider expertness and experience to accomplish better monetary value and quality for each work bundles.

10. Selective tendering to guarantee satisfactory public presentation on the building plan and direction system frequently carries out the assignment of the direction contractors. With subsequent tendering, a cheaper monetary value can be achieved.

11. Management catching is cost effectual in squads of cut downing the completion clip, the fiscal advantage is clear that the value of money changed, salvaging over the twelvemonth, rising prices and speedy income returns provide a greater benefit to client who has a shorter undertaking continuance.

12. Claims are likely to originate and those that do are cover with more rapidly. Furthermore, if arise, with one plants contractor may non impact the overall work advancement.

( Ooi, Lee Yun, 2001 )

Construction Management

1. Normally the professional building director will speed up the plans overlapping design and building for the client.

2. The method of building direction able to closely pull off cost during the design and procurance.

3. This method besides proactive direction of the design and building procedure to minimise the impact of alteration and other causes of break such as site entree limitation, unanticipated site conditions and late or wrong design and so on.

4. The building director besides hands-on engagement of the client on the building undertaking.

5. Besides that, the professional squad including the building director had emphasized on run intoing the client ‘s demands. The integrating of design and building accomplishments of the building director besides else and accommodate the client ‘s demand.

6. The full control over the design includes the incorporation of design by specializer contractors.

7. The building advisors and specialist trade contractors besides can be early assignment.

8. There is ability of client to act upon the choice of trade contractors, unlike the design and construct method ; the client merely can take a contractor for the whole building undertakings.

9. There are one-to-one contractual relationships. So, the clients can communication easy.

10. The direction in this method are concentrating on the plan, sequencing and build ability of the undertaking.

11. The client has the right of tendering ownership and the contractual agreements in the undertaking.

12. The client has opportunity to box the work to accommodate the capableness of the trade contractors while manage on-site interfaces..

13. The client has right to place and move upon trade contractor public presentation.

( Langdon, D. and Rawlinson, S. 2006 )


Management Catching

1. The direction contractor and his work contractors may double pricing the preliminary points. Duplicate of site direction and her resources such as scaffolds and other services are uneconomical, peculiarly when they may non be used at all. This besides creates job on the budget, established before the plan is decided.

2. The work contractors may hold to set about some hazard because they are frequently paid merely when the direction contractor is paid. Therefore, they must hold a well planned hard currency flow than the traditional method.

3. In direction catching, the client has to bear the fiscal hazard due to the default of the work contractors or the direction contractor if a plant contractors fails to rectify defective craft.

4. Problems of coordination between increased figure of works contractors on lead to production holds and be evidences for contractual claims.

5. Biased contract certification may be drawn up which below the belt allocates duties to plants contractors who may non be to the full equipped to execute.

6. Client is non cognizant of the fiscal committedness before the beginning of a undertaking on size.

7. In the event of the expiration of a plant contractors ( due to non-performance ) , the client bears the cost of set uping the completion contract.

8. Client may hold no damages against the direction contractor in regard of public presentation and quality, work contractor ‘s work, late completion and recovery of amendss for late completion.

9. Management contractors are ( sometimes ) pressurized to accept some of the fiscal hazards inherent in the production such as maintaining, satisfactory public presentation and quality of work, clip overproductions, latent defects and design failures.

10. Client has two set of fees to pay for the professional services of design and building direction.

( Ooi, Lee Yun, 2001 )

Contraction Management

1. The client has to take hazard of the design co-ordination and increased the opportunities of design alteration.

2. There are no cost certainties till the all bundles are let and no even individual point lump-sum cost committedness between the client and the building director.

3. The client besides exposure to take hazard with the building director and squad public presentation. The trust between the building director and undertaking squad with the client is to right calculate effects of alteration. The duty to fund solutions to jobs will the building director and undertaking squad occur in the building works besides become a job.

4. The building director path has increased disposal function for the client. Therefore, the building director and professional squad owe the responsibility of attention duty merely. So, they are really pressure on their work.

5. The client ownership of hazards is high in the design including impacts of late or uncomplete and uncoordinated design.

6. The one to one contractual relationships o client is added complexness with all the squad members.

7. The trust on the direction public presentation of the building director merely.

8. The client is places on the medium of direction requires effectual decision-making ; unlike the design and physique method which is more less decision-making for the client.

9. The client is taking the public presentation hazard and to eventful loss associated with trade contractor default.

( Langdon, D. and Rawlinson, S. 2006 )


After complete the full portion of this study, the purpose of making this assignment is to find the assorted types of procurance methods that used in building industry in Malaysia.

We are able to place the different types of procurance methods that used in Malaysia building industry ; there are Traditional Method, Design and Build Method, Management Method and Integrated Method in the building industry. The study are emphasize on cost, clip, quality, advantages and disadvantages of each method used.

In our observation, the traditional method really is the most popularly used in Malaysia building industry due to the client can cognize all the procedure of the building. Design and Build are acquiring more popularly in these few old ages. The direction method is suited for the undertaking that is big and complex such as shopping Centre and infirmary. However, the integrated method is less celebrated in the Malaysia building industry.

Besides that, the client ‘s features and the undertaking features are really of import because it will impact the choice of procurance method for their undertaking. Therefore, the different features of all the procurance method should keep in the building industry so the client have vary picks to take what procurance method they needed.

Last, nowadays the picks are become wider and wider, so the choice procedure have to be carried out in a consecutive and nonsubjective mode and within the structural of the undertaking scheme and undertaking brief. The brief must incorporate the client ‘s the chief aim of the procurance method. The chief aim is the overall procedure of the procurance method is included the functionality, quality, clip, cost, advantages and besides the disadvantages.


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